In the post-COVID business world, digital transformation has become a shared reality born of necessity.
In the post-COVID business world, digital transformation has become a shared reality born of necessity. However, companies must ask themselves if they have done enough to make their digital transformation projects sustainable.
Global digital transformation spending is expected to reach $3.4 trillion in 2026 at a five-year compound annual growth rate of 16.3%, according to the International Data Corporation (IDC) Global Digital Transformation Spending Guide. Regionally, India’s digital economy alone is expected to exceed US$1 trillion by 2025, according to MeitY.
Despite these expectations, more than 80% of these transformations fail and the rest are not always able to deliver ongoing value beyond immediate gains. A staggering 88% of the Fortune 500 companies that existed in 1955 have been consigned to the history books because they failed to innovate.
For example, Kodak, once the largest film company in the world, lost money during the digital revolution due to fear of cannibalizing its most powerful product line. This digital frequency is now what the brand is known for, which certainly affects its reputation in turn.
With these examples in mind, it’s clear that companies need to work hard to stay ahead of the digital curve. But how can companies know if they are competitive, attractive to the ever-changing consumer, and fully prepared for the digital environment of the marketplace?
One solution, says Sanjib Sahu, executive vice president and chief digital officer of Ingram Micro, is “digital fitness” — a measure of how well a company fits into the current digital business environment.
But why does a business need digital fitness?
“When you are born into the digital age, you always have to continuously assess your digital fitness and then create an agenda that works for you. For example, if you have really outdated legacy systems and you want to use machine learning to generate valuable results, you won’t succeed. This is because you have to focus first on rationalizing your legacy systems and align all your data.This is the plumbing.
So when can we digitally name a suitable company?
“We know that fitness is a lifestyle change. You can go on a diet for a few months, but you may gain weight because it’s a continuous process. Then you measure your BMI, based on that someone will tell you to do 30 more minutes of cardio or reduce your intake.” Carbohydrates.We follow a fitness regimen for longevity, want to live a long, healthy life and actively reduce our risk of disease as we age.The same goes for business, he says.
He envisions the same principle can be applied to business organizations and their digital capabilities.
“Since 2000, more than 50% of the Fortune 500s have been disrupted. Either the existing companies themselves have changed or new startups have taken market share. The tech world changes all the time and competition can come from anywhere. This makes it important Highly assess your digital BMI and understand whether or not the organization is really digitally appropriate.
Many companies today face performance gaps and missed opportunities that can risk the viability of the entire organization.
“Almost every company today is going through a digital transformation, but first they have to assess and understand that digital fitness is a change in the way a company thinks,” he adds.
“This is one of the reasons why some companies have fallen off the Fortune 500 list, and why every company is concerned about the next disruptive startup with digital speed and agility to seize the next market opportunity,” he says.
Digital BMI: A change in mindset
“You have to plan quickly. You have to be agile. The digital BMI indicates that you have to understand your position in the market,” advises Sahu.
To gauge this, companies can ask themselves several questions.
Are your legacy code and legacy systems smart? Do you have customer centricity? Can you always create an omnichannel customer experience? Are you ready to innovate, run, and integrate at the same time? What is your speed and time to market? Is it weeks, months, or years? Willing to create multiple monetization models?All of this makes you measure your fit digitally,” he explains.
Who is the right digital leader?
He calls digital transformation ethos because it cannot be taught in the classroom.
The first factor in the failure of digital transformation projects is the spirit and mentality. People focus on what they’ve been doing for years, and resist change. This won’t work,” he says.
“A company that is not digitally competent is going to take a long time to make decisions. It doesn’t move quickly. It doesn’t understand and gauge where the competition is. There is no stakes or risk going forward,” Sahu replies.
“It doesn’t really address the opportunity gap, and these companies are prone to disruption, because you always have to understand where the market is going,” he advises.
Pivot in the market can come from unprecedented and unexpected trends, as the pandemic has clearly taught us. For example, the aviation industry is starting to get competition from video conferencing software.
“Today, you never know where the competition is coming from. Digitally inadequate companies have been doing the same thing, the same way forever. They don’t have multiple monetization models. They don’t move quickly. Their systems are getting old and they don’t handle that. And that’s when they get slower and slower like a person.” physically unfit,” he explains.
“Just as a person who is physically unfit becomes at risk of diabetes or a heart attack, organizations that are digitally unfit become vulnerable to disruption and a fall from market dominance,” he adds.
“You can’t be complacent, because when you’re satisfied, you’re done. And that’s digital impropriety.”
Digital transformation is neither an experience nor a luxury. It does not have a stop sign. It is a necessity if the company is to remain successful. It is also not just a level to be crossed and finished, but a permanent change of mindset that will help the company and its team continuously move forward.
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